Probate Terminology

When a person dies, their assets are distributed according to their will or trust. However, if they did not have a will or trust, or if their will is found to be invalid, the distribution of their assets is determined by a court through a process known as probate. Probate can be a complicated process, with many legal terms and concepts that can be confusing for those unfamiliar with the process. In this post, we will explain some of the most common probate terminology that real estate agents should know.

Executor/Administrator: The executor or administrator is the person responsible for administering the estate. The executor is named in the will, while the administrator is appointed by the court if there is no will. The executor or administrator is responsible for managing the assets of the estate, paying any debts and taxes owed by the deceased, and distributing the assets to the beneficiaries.

Beneficiary: A beneficiary is a person or entity who is entitled to receive a share of the deceased person’s assets. Beneficiaries are named in the will or determined by the court if there is no will.

Estate: The estate refers to all of the assets and liabilities left behind by the deceased person. This includes real estate, personal property, bank accounts, investments, and any debts owed by the deceased.

Probate: Probate is the legal process by which the court supervises the administration of the estate. The probate court ensures that the executor or administrator is following the law and properly managing the assets of the estate.

Intestate: If a person dies without a will, they are said to have died intestate. In this case, the court will appoint an administrator to manage the estate and distribute the assets according to state law.

Testate: If a person dies with a valid will, they are said to have died testate. The court will appoint an executor to manage the estate and distribute the assets according to the terms of the will.

Letters Testamentary/Letters of Administration: Letters testamentary are issued by the court to the executor named in the will, giving them the authority to manage the estate. Letters of administration are issued by the court to the administrator appointed by the court if there is no will.

Estate Tax: Estate tax is a tax on the value of the deceased person’s estate. The tax is paid by the estate before the assets are distributed to the beneficiaries.

Real Estate in Probate: Real estate owned by the deceased person is included in the estate and may be subject to probate. Real estate can be sold during probate, but the sale must be approved by the court.

Probate Sales: A probate sale is a sale of real estate that is being sold as part of the probate process. Probate sales can be complicated, as they require court approval and often involve multiple parties.

Understanding probate terminology is essential for real estate agents who work with clients who are dealing with a probate property. Real estate transactions involving probate properties can be complicated, and it is important to have a good understanding of the probate process and the legal terminology involved. By working with an experienced probate attorney and real estate agent, clients can navigate the probate process and ensure that their interests are protected.

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